How do I Choose an Investment Brokerage?

Article Details
  • Written By: Malcolm Tatum
  • Edited By: Bronwyn Harris
  • Last Modified Date: 24 January 2020
  • Copyright Protected:
    Conjecture Corporation
  • Print this Article

As many investors know firsthand, choosing the right investment brokerage firm is key to creating an maintaining a strong portfolio. Since investors have a wide range of preferences, investment styles, and financial goals, it is important to go with a brokerage that recognizes and supports the investing objections of the individual investor. However, there is a core group of characteristics that are likely to apply whenever any investor goes shopping for a brokerage service.

For many investors, the main goal of investing is to prepare for the years after retirement. For this reason, a good investment brokerage will have plenty of options that work toward this end. The brokerage will be able to provide access to a financial planner who can help the investor shape a strategy that is likely to provide a secure nest egg for later years. Within the perimeters of this type of retirement fund management, a financial adviser may guide the client toward such possible investments as a 401(k) plan built on a foundation of low to mid-risk investments.


If the goals of the investor lean more toward generating revenue for use now, an investment advisor can help the client determine his or her comfort level with volatility. This is matched to the financial goals the client has in mind. For example, if the investor is looking for ways to generate enough in the way of finances to purchase a home in five years, the investment brokerage can identify and offer options that are likely to lead to returns that will help meet the goal.

When it comes to choosing an investment brokerage, it is also important to have a great deal of confidence in the integrity and ethics of the firm. This confidence is cultivated by the past history of the brokerage. Any firm that has a solid history of helping clients successfully build a solid investment portfolio is worth consideration.

At the same time, it is important that the function of the investment brokerage be above reproach. Multiple citations for regulatory infringements are warning signs that something is not in order. Avoid any investment brokerage that appears to be shaky when it comes to ethics, no matter what type of returns they promise to help you realize. In the long run, you will come out ahead by going with a firm who plays by the rules and keeps you and the firm out of trouble.

Essentially, choosing the right investment brokerage is about finding a firm that is successful, honest, respects your goals, and is willing to work with you in attaining those goals. Even if you find that means paying a little higher commission or fee on your trades, it will be worth it if you know you are in good hands.



Discuss this Article

Post your comments

Post Anonymously


forgot password?